What will happen to Land Charging Orders on my home when it gets repossessed?

moerson

Unfortunately I am now at rock bottom as I have been unable to find work since I was made redundant and am now at the stage of my house being repossessed. I have 3 charging orders on my house (from 3 credit cards and loans totalling 20k)

I am in negative equity on my home so what is going to happen to the money I owe to my creditors once my home is taken back by the bank?

Any help would be appreciated.

Thanks.

beanielou

I have no idea but Im sure someone will be along to help soon.

nottoolate

will become an unsecured judgment debt again

Sparklyfairy

nottoolate wrote: »

will become an unsecured judgment debt again

Will it? I'm curious as to what happens in this situation as well. Where did you get this information from, please?

nottoolate

have read about it somewhere. but surely is common sense as well. ccj doesnt go away when the charged property is sold.

moerson

Thanks for the advice. So I would therefore presume, if I ever DO buy a house again in the distant future, the debt would become charged again? If so, will there be interest added to this debt? I'm concerned as if it's say, 10 years when I buy again, will the amount owed have increased at the statutory 8%?

Thanks again for all the advice.

Sparklyfairy

moerson wrote: »

Thanks for the advice. So I would therefore presume, if I ever DO buy a house again in the distant future, the debt would become charged again? If so, will there be interest added to this debt? I'm concerned as if it's say, 10 years when I buy again, will the amount owed have increased at the statutory 8%?

Thanks again for all the advice.

Your creditors would have to take you back to court if they wanted charging orders on your new property. If they did, NO CREDITOR of a debt regulated by the CCA (loans, credit cards) can add ANY interest (many DO, but it is absolutely NOT ALLOWED!). Should this happen again & you are dragged back to court, fight your corner on this & bring docs, case law to state this as many district judges are unaware of this & you essentially have to "educate" them on the matter...However, if you are worried about the creditors rearing their ugly heads again, would you consider filing bankruptcy? That way they would have no ability to come back at you. It's only a suggestion but something I would consider imo..

JustinCredibleGillespie

Bankruptcy definitely does look like an option here, however think of it as a last resort.

If you were to go Bankrupt then these charging orders and the shortful on the mortgage (neg equity) would turn to an unsecured debt and would be written off providing you do not sign anything that would make you liable for the shortfall.

JCG

xx

Sparklyfairy

Yes I second what JCG has said above. If you like, pop down to the Bankruptcy board just below this one & ask for some input/pointers on it - also agree to not sign anything as above because I have read where some people have gotton stung in the past..only do what your insolvancy practitioner advises.

Also, after 6 years, your credit history won't show it any longer...